‘Vistara is awaiting approval to fly abroad’
‘A total of 50 new narrow-body aircraft from Airbus (including 37 aircraft on lease) are scheduled for delivery to the airline between 2019 and 2023.’
do you think it would boost the airlines and its operations? A: A total of 50 new narrowbody aircraft from Airbus ( including 37 aircraft on lease) are scheduled for delivery to us between 2019 and 2023, and the six widebody 787-9 Boeing Dreamliner will be delivered between 2020 and 2021. We will use the Airbus A320neo family aircraft, which includes the A321neo, to densify our domestic network and fly to other international destinations within the range of 3-6 hours. The six Boeing 787-9 Dreamliner aircraft are intended for use on medium-haul and longhaul international routes. Q: Vistara had recently announced its “Vistara Freedom Fares” which will act as fares of low- cost carriers ( LCCs). Since Vistara was launched as a full-service airline, does the introduction of this fare indicates that Vistara could in future launch a different segment of LCCs given that the other LCC players in the aviation market are giving cut throat competition? A: Vistara is a full-service carrier. We are confident and deeply committed to our business model. “Vistara Freedom Fares” is only the introduction of a menu- based pricing model, which is designed to empower travellers with the freedom to choose the kind of fare and services that suit them best, enabling them to plan their journeys their way. It simplifies flying for travellers and, we believe, can be a game-changer in the industry. It is a novel concept that the biggest and the best airlines all around the world have adopted in response to customer needs. Our offering, obviously, is unique and tailored for Indian travellers. Eventually, we’re only giving options to our customers, empowering them to pay for what they value. It is logical and only means good for customers. At Vistara, we spent months exploring multiple possibilities and in understanding what works best for new-age travellers, who have varied preferences. Lite fares address those customers who simply want the lowest fares and no other frills, and this is a segment of customers that we had, perhaps, not appropriately addressed hitherto. And it must be noted that “Vistara Freedom Fares” are not just about Lite fares, which is just one of the fare types in the programme. Our Standard and Flexi fares offer lower and free changes/cancellation fees, respectively— and both come at very affordable add-on price. As a full-service carrier, our USP is that we are a customercentric brand, committed to redefining air travel in India with innovative propositions and excellent service delivery. Our new customerempowering pricing model only reiterates our USP and what we stand for. Q: Despite the fact that the Indian aviation market is growing a year-on-year basis, the airlines are not showing a huge profit. What are the key challenges in the way of running a profitable airlines business? A: Indeed, the growth of the Indian aviation has been phenomenal. At the same time, the rise in fuel prices, the depreciating value of the rupee, combined with state taxes on ATF, high parking, landing, navigation and other such high-cost contributors, make the business challenging for airlines in India. It is a market where yields are among the lowest in the world and taxation is among the highest. We’re hopeful of the government’s continuous efforts in this direction that will eventually ease airline businesses. Q: The development of aviation infrastructure in India is being talked about when the market is growing rapidly. As an operating airline, where and how do you think that the infrastructure could be improved for smooth functioning? A: Infrastructure-related issues, including but not limited to runway shortage, slot and airport capacity constraints, require immediate and targeted solutions.
There is a sharpened focus on infrastructure development by the government. It is heartening to see that the government has rolled out some very ambitious initiatives in the recent past. In consultation with all stakeholders, it has revisited existing policies and introduced new ones that are pro-business and pro-consumer. The government’s vision of enabling a billion passenger trips a year addresses several needs, the most important being that of a better infrastructure.
We’re very hopeful that these steps, coupled with the growing demand for air travel in India, will elevate the country’s position in the global market. Q: Vistara has so far stayed away from participating in the UDAN scheme for regional connectivity, while most of the Indian airlines have participated in it. Do you think it is an opportunity missed and would you like to participate in the future rounds of bidding? A: We support the government’s UDAN scheme and view it as a landmark step in Indian aviation. However, due to our relatively small scale and size at present and the absence of suitable aircraft to operate on routes under the scheme, we could not participate in it. However, we do not rule out the possibility of doing so in the future. Nestle SA is the world’s largest food and beverage company, with over 2,000 brands and a presence in over 190 countries around the world. Nestle India is a subsidiary of Nestle SA, having started operations in India in the year 1912, to sell Swiss condensed milk. Today, it has become the first pure food listed entity in the country to cross Rs 10,000 crore sales turnover. Nestle India has eight state of the art manufacturing facilities across the country. The company’s flagship instant noodles brand, Maggi, has attained a mind boggling 60% market share in the country and contributes around one third of the total sales of the company. The company had hit a road-block in mid 2015, when it had to withdraw Maggi noodles from the market, following a regulatory ban on the product by the FSSAI. The ban was due to an alleged presence of lead beyond permissible limits found in Maggi noodles. Nestle India re-launched the noodles in November 2015, five months after the regulatory ban and is now almost touching sales of the pre-crisis levels. With an equity capital of Rs 96.42 crore and net worth of Rs 3,420 crore, Nestle India’s share book value works out to Rs 354.78. The foreign parent holds 62.8% of the equity capital, domestic institutions hold around 8%, foreign institutional investors hold another 13%, while the balance is held by the Indian investing public. The market cap stands at Rs 1 lakh crore at the current market price of Rs 10,355 per share. Its healthy sales performance has been supported by brands like Maggi Nutrilicious noodles, Milkybar, KitKat and Milo as well as new variants of Grekyo. With continuous thrust on innovation and renovation, Nestle has launched 15 new products in the last one year and proposes to launch many new products in the next few quarters in the Maggi Dip and Milo drink and KitKat chocolate space. In April 2018, Government of Gujarat had joined hands with Nestle India and National Association of Street Food Vendors of India to train 375 street food vendors in Ahmedabad on food quality and safety. Keeping in line with changing consumer preference towards healthier products, the company plans to reduce salt, sugar and fat across its brands by 6%-10% over the next two-three years. The next year should be good for Nestle India, due to a combination of factors such as settling down of GST, good monsoon and upcoming state elections. All this should have a positive impact on the consumption sector and benefit Nestle to a large extent. The Nestle stock can be purchased by investors for long term with steady gains in their portfolio. The Nifty ended the Friday session racing past the 11,500mark on the back of multiple positive factors. There was widespread buying seen across all sectors and the mood was of optimism after last week’s downfall. Short covering by traders, selective buying by Indian mutual funds and some positive commentary from the Prime Minister’s economic review meeting helped the markets regain lost ground. The market outlook for next week is positive with consumption, pharma and IT sectors to trade strong. Rajiv Kapoor is a share broker, certified mutual fund expert and MDRT insurance agent.